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Posts tagged ‘Business Intelligence Forecast’

Where Business Intelligence Is Delivering Value In 2018

  • Executive Management, Operations, and Sales are the three primary roles driving Business Intelligence (BI) adoption in 2018.
  • Dashboards, reporting, end-user self-service, advanced visualization, and data warehousing are the top five most important technologies and initiatives strategic to BI in 2018.
  • Small organizations with up to 100 employees have the highest rate of BI penetration or adoption in 2018.
  • Organizations successful with analytics and BI apps define success in business results, while unsuccessful organizations concentrate on adoption rate first.
  • 50% of vendors offer perpetual on-premises licensing in 2018, a notable decline over 2017. The number of vendors offering subscription licensing continues to grow for both on-premises and public cloud models.
  • Fewer than 15% of respondent organizations have a Chief Data Officer, and only about 10% have a Chief Analytics Officer today.

These and many other fascinating insights are from Dresner Advisory Service’s  2018 Wisdom of Crowds® Business Intelligence Market Study. In its ninth annual edition, the study provides a broad assessment of the business intelligence (BI) market and a comprehensive look at key user trends, attitudes, and intentions.  The latest edition of the study adds Information Technology (IT) analytics, sales planning, and GDPR, bringing the total to 36 topics under study.

“The Wisdom of Crowds BI Market Study is the cornerstone of our annual research agenda, providing the most in-depth and data-rich portrait of the state of the BI market,” said Howard Dresner, founder and chief research officer at Dresner Advisory Services. “Drawn from the first-person perspective of users throughout all industries, geographies, and organization sizes, who are involved in varying aspects of BI projects, our report provides a unique look at the drivers of and success with BI.” Survey respondents include IT (28%), followed by Executive Management (22%), and Finance (19%). Sales/Marketing (8%) and the Business Intelligence Competency Center (BICC) (7%). Please see page 15 of the study for specifics on the methodology.

Key takeaways from the study include the following:

  • Executive Management, Operations, and Sales are the three primary roles driving Business Intelligence (BI) adoption in 2018. Executive management teams are taking more of an active ownership role in BI initiatives in 2018, as this group replaced Operations as the leading department driving BI adoption this year. The study found that the greatest percentage change in functional areas driving BI adoption includes Human Resources (7.3%), Marketing (5.9%), BICC (5.1%) and Sales (5%).

  • Making better decisions, improving operational efficiencies, growing revenues and increased competitive advantage are the top four BI objectives organizations have today. Additional goals include enhancing customer service and attaining greater degrees of compliance and risk management. The graph below rank orders the importance of BI objectives in 2018 compared to the percent change in BI objectives between 2017 and 2018. Enhanced customer service is the fastest growing objective enterprises adopt BI to accomplish, followed by growth in revenue (5.4%).

  • Dashboards, reporting, end-user self-service, advanced visualization, and data warehousing are the top five most important technologies and initiatives strategic to BI in 2018. The study found that second-tier initiatives including data discovery, data mining/advanced algorithms, data storytelling, integration with operational processes, and enterprise and sales planning are also critical or very important to enterprises participating in the survey. Technology areas being hyped heavily today including the Internet of Things, cognitive BI, and in-memory analysis are relatively low in the rankings as of today, yet are growing. Edge computing increased 32% as a priority between 2017 and 2018 for example. The results indicate the core aspect of excelling at using BI to drive better business decisions and more revenue still dominate the priorities of most businesses today.
  • Sales & Marketing, Business Intelligence Competency Center (BICC) and   Executive Management have the highest level of interest in dashboards and advanced visualization. Finance has the greatest interest in enterprise planning and budgeting. Operations including manufacturing, supply chain management, and services) leads interest in data mining, data storytelling, integration with operational processes, mobile device support, data catalog and several other technologies and initiatives. It’s understandable that BICC leaders most advocate end-user self-service and attach high importance to many other categories as they are internal service bureaus to all departments in an enterprise. It’s been my experience that BICCs are always looking for ways to scale BI adoption and enable every department to gain greater value from analytics and BI apps. BICCs in the best run companies are knowledge hubs that encourage and educate all departments on how to excel with analytics and BI.

  • Insurance companies most prioritize dashboards, reporting, end-user self-service, data warehousing, data discovery and data mining. Business Services lead the adoption of advanced visualization, data storytelling, and embedded BI. Manufacturing most prioritizes sales planning and enterprise planning but trails in other high-ranking priorities. Technology prioritizes Software-as-a-Service (SaaS) given its scale and speed advantages. The retail & wholesale industry is going through an analytics and customer experience revolution today. Retailers and wholesalers lead all others in data catalog adoption and mobile device support.

  • Insurance, Technology and Business Services vertical industries have the highest rate of BI adoption today. The Insurance industry leads all others in BI adoption, followed by the Technology industry with 40% of organizations having 41% or greater adoption or penetration. Industries whose BI adoption is above average include Business Services and Retail & Wholesale. The following graphic illustrates penetration or adoption of Business Intelligence solutions today by industry.

  • Dashboards, reporting, advanced visualization, and data warehousing are the highest priority investment areas for companies whose budgets increased from 2017 to 2018. Additional high priority areas of investment include advanced visualization and data warehousing. The study found that less well-funded organizations are most likely to lead all others by investing in open source software to reduce costs.

  • Small organizations with up to 100 employees have the highest rate of BI penetration or adoption in 2018. Factors contributing to the high adoption rate for BI in small businesses include business models that need advanced analytics to function and scale, employees with the latest analytics and BI skills being hired to also scale high growth businesses and fewer barriers to adoption compared to larger enterprises. BI adoption tends to be more pervasive in small businesses as a greater percentage of employees are using analytics and BI apps daily.

  • Executive Management is most familiar with the type and number of BI tools in use across the organization. The majority of executive management respondents say their teams are using between one or two BI tools today. Business Intelligence Competency Centers (BICC) consistently report a higher number of BI tools in use than other functional areas given their heavy involvement in all phases of analytics and BI project execution. IT, Sales & Marketing and Finance are likely to have more BI tools in use than Operations.

  • Enterprises rate BI application usability and product quality & reliability at an all-time high in 2018. Other areas of major improvements on the part of vendors include improving ease of implementation, online training, forums and documentation, and completeness of functionality. Dresner’s research team found between 2017 and 2018 integration of components within product dropped, in addition to scalability. The study concludes the drop in integration expertise is due to an increasing number of software company acquisitions aggregating dissimilar products together from different platforms.

Roundup Of Analytics, Big Data & BI Forecasts And Market Estimates, 2016

  • World map technologyBig Data & business analytics software worldwide revenues will grow from nearly $122B in 2015 to more than $187B in 2019, an increase of more than 50% over the five-year forecast period.
  • The market for prescriptive analytics software is estimated to grow from approximately $415M in 2014 to $1.1B in 2019, attaining a 22% CAGR.
  • By 2020, predictive and prescriptive analytics will attract 40% of enterprises’ net new investment in business intelligence and analytics.

Making enterprises more customer-centric, sharpening focus on key initiatives that lead to entering new markets and creating new business models, and improving operational performance are three dominant factors driving analytics, Big Data, and business intelligence (BI) investments today. Unleashing the insights hidden in unstructured data is providing enterprises with the potential to compete and improve in areas they had limited visibility into before. Examples of these areas include the complexity of B2B selling and service relationships,  healthcare services, and maintenance, repair, and overhaul (MRO) of complex machinery. All organizations face the daunting task of integrating systems together to enable greater process visibility. enosiX is taking a leadership role in this area, offering real-time integration between SAP and Salesforce systems, giving enterprises the opportunity to be more responsive to suppliers, resellers, partners and most importantly, customers.

Presented below are a roundup of recent analytics and big data forecasts and market estimates:

  • The global big data market will grow from $18.3B in 2014 to $92.2B by 2026, representing a compound annual growth rate of 14.4 percent. Wikibon predicts significant growth in all four sub-segments of big data software through 2026. Data management (14% CAGR), core technologies such as Hadoop, Spark and streaming analytics (24% CAGR), databases (18% CAGR) and big data applications, analytics and tools (23% CAGR) are the four fastest growing sub-segments according to Wikibon. Source: Wikibon forecasts Big Data market to hit $92.2B by 2026.

Wikibon big data forecast 2016

analytics market shares

IDC FutureScape

  • The Total Data market is expected to nearly double in size, growing from $69.6B in revenue in 2015 to $132.3B in 2020. The specific market segments included in 451 Research’s analysis are operational databases, analytic databases, reporting and analytics, data management, performance management, event/stream processing, distributed data grid/cache, Hadoop, and search-based data platforms and analytics. Source: Total Data market expected to reach $132bn by 2020; 451 Research, June 14, 2016.

Worldwide total revenue by segment

overall adoption of big data

  • Improving customer relationships (55%) and making the business more data-focused (53%) are the top two business goals or objectives driving investments in data-driven initiatives today. 78% of enterprises agree that collection and analysis of Big Data have the potential to change fundamentally the way they do business over the next 1 to 3 years. Source: IDG Enterprise 2016 Data & Analytics Research, July 5, 2016.

Data Helps Customer Focused Organizations

  • Venture capital (VC) investment in Big Data accelerated quickly at the beginning of the year with DataDog ($94M), BloomReach ($56M), Qubole ($30M), PlaceIQ ($25M) and others receiving funding. Big Data startups received $6.64B in venture capital investment in 2015, 11% of total tech VC.  M&A activity has remained moderate (FirstMark noted 35 acquisitions since their latest landscape was published last year). Source: Matt Turck’s blog post, Is Big Data Still a Thing? (The 2016 Big Data Landscape).

big data landscape

  • IDC forecasts global spending on cognitive systems will reach nearly $31.3 billion in 2019 with a five-year compound annual growth rate (CAGR) of 55%. More than 40% of all cognitive systems spending throughout the forecast will go to software, which includes both cognitive applications (i.e., text and rich media analytics, tagging, searching, machine learning, categorization, clustering, hypothesis generation, question answering, visualization, filtering, alerting, and navigation). Also included in the forecasts are cognitive software platforms, which enable the development of intelligent, advisory, and cognitively enabled solutions.  Source:  Worldwide Spending on Cognitive Systems Forecast to Soar to More Than $31 Billion in 2019, According to a New IDC Spending Guide.
  • Big Data Analytics & Hadoop Market accounted for $8.48B in 2015 and is expected to reach $99.31B by 2022 growing at a CAGR of 42.1% from 2015 to 2022. The rise of big data analytics and rapid growth in consumer data capture and taxonomy techniques are a few of the many factors fueling market growth. Source: Stratistics Market Research Consulting (PDF, opt-in, payment reqd).

Additional sources of market information: 

Analytics Trends 2016 The Next Evolution, Deloitte.

Big data analytics, Ericsson White Paper Uen 288 23-3211 Rev B | October 2015

Big Data and the Intelligence Economy in Canada Big Data: Big Opportunities to Create Business Value, EMC.

The Forrester Wave™: Big Data Hadoop Distributions, Q1 2016

The Forrester Wave™: Big Data Hadoop Cloud Solutions, Q2 2016

The Forrester Wave™: Big Data Text Analytics Platforms, Q2 2016

The Forrester Wave™: Big Data Streaming Analytics, Q1 2016

The Forrester Wave™: Customer Analytics Solutions, Q1 2016

From Big Data to Better Decisions: The ultimate guide to business intelligence today (Domo)

Gartner Hype Cycle for Business Intelligence and Analytics, 2015

IBM: Extracting business value from the 4 V’s of big data

IDC Worldwide Big Data Technology and Services 2012 – 2015 Forecast

Opportunities in Telecom Sector: Arising from Big Data. Deloitte, November 2015

Who will win as Finance doubles down on analytics?

Roundup Of Analytics, Big Data & Business Intelligence Forecasts And Market Estimates, 2014

NYC SkylineFrom manufacturers looking to gain greater insights into streamlining production, reducing time-to-market and increasing product quality to financial services firms seeking to upsell clients, analytics is now essential for any business looking to stay competitive.  Marketing is going through its own transformation, away from traditional tactics to analytics- and data-driven strategies that deliver measurable results.

Analytics and the insights they deliver are changing competitive dynamics daily by delivering greater acuity and focus.  The high level of interest and hype surrounding analytics, Big Data and business intelligence (BI) is leading to a proliferation of market projections and forecasts, each providing a different perspective of these markets.

Presented below is a roundup of recent forecasts and market estimates:

  • The Advanced and Predictive Analytics (APA) software market is projected from grow from $2.2B in 2013 to $3.4B in 2018, attaining a 9.9% CAGR in the forecast period.  The top 3 vendors in 2013 based on worldwide revenue were SAS ($768.3M, 35.4% market share), IBM ($370.3M, 17.1% market share) and Microsoft ($64.9M, 3% market share).  IDC commented that simplified APA tools that provide less flexibility than standalone statistical models tools yet have more intuitive graphical user interfaces and easier-to-use features are fueling business analysts’ adoption.  Source: http://www.idc.com/getdoc.jsp?containerId=249054
  • A.T. Kearney forecasts global spending on Big Data hardware, software and services will grow at a CAGR of 30% through 2018, reaching a total market size of $114B.  The average business expects to spend $8M on big data-related initiatives this year. Source: Beyond Big: The Analytically Powered Organization.
  • Cloud-based Business Intelligence (BI) is projected to grow from $.75B in 2013 to $2.94B in 2018, attaining a CAGR of 31%.  Redwood Capital’s recent Sector Report on Business Intelligence  (free, no opt in) provides a thorough analysis of the current and future direction of BI.  Redwood Capital segments the BI market into traditional, mobile, cloud and social business intelligence.   The following two charts from the Sector Report on Business Intelligence  illustrate how Redwood Capital sees the progression of the BI market through 2018.

redwood capital global intelligence market size

  • Enterprises getting the most value out of analytics and BI have leaders that concentrate more on collaboration, instilling confidence in their teams, and creating an active analytics community, while laggards focus on technology alone.  A.T. Kearney and Carnegie Mellon University recently surveyed 430 companies around the world, representing a wide range of geographies and industries, for the inaugural Leadership Excellence in Analytic Practices (LEAP) study.  You can find the study here.  The following is a graphic from the study comparing the characteristics of leaders and laggards’ strategies for building a culture of analytics excellence.

leaders and laggards2

  • The worldwide market for Big Data related hardware, software and professional services is projected to reach $30B in 2014.  Signals and System Telecom forecasts the market will attain a Compound Annual Growth Rate (CAGR) of 17% over the next 6 years.  Signals and Systems Telecom’s report forecasts Big Data will be a $76B market by 2020.  Source: http://www.researchandmarkets.com/research/s2t239/the_big_data
  • Big Data is projected to be a $28.5B market in 2014, growing to $50.1B in 2015 according to Wikkbon.  Their report, Big Data Vendor Revenue and Market Forecast 2013-2017 is outstanding in its accuracy and depth of analysis.  The following is a graphic from the study, illustrating Wikibon’s Big Data market forecast broken down by market component through 2017.

Big Data Wikibon

  • SAPIBMSASMicrosoftOracle, Information Builders, MicroStrategy, and Actuate are market leaders in BI according to Forrester’s latest Wave analysis of BI platforms.  Their report, The Forrester Wave™: Enterprise Business Intelligence Platforms, Q4 2013 (free PDF, no opt in, courtesy of SAS) provides a thorough analysis of 11 different BI software providers using the research firm’s 72-criteria evaluation methodology.
  • Amazon Web Services, Cloudera, Hortonworks, IBM, MapR Technologies, Pivotal Software, and Teradata are Big Data Hadoop market leaders according to Forrester’s latest Wave analysis of Hadoop Solutions.  Their report, The Forrester Wave™: Big Data Hadoop Solutions, Q1 2014 (free PDF, no opt in, courtesy of MapR Technologies) provides a thorough analysis of nine different Big Data Hadoop software providers using the research firm’s 32-criteria evaluation methodology.
  • IDC forecasts the server market for high performance data analysis (HPDA) will grow at a 23.5% compound annual growth rate (CAGR) reaching $2.7B by 2018.  In the same series of studies IDC forecasts the related storage market will expand to $1.6B also in 2018. HPDA is the term IDC created to describe the formative market for big data workloads using HPC. Source: http://www.idc.com/getdoc.jsp?containerId=prUS24938714
  • Global Big Data technology and services revenue will grow from $14.26B in 2014 to $23.76B in 2016, attaining a compound annual growth rate of 18.55%.  These figures and a complete market analysis are available in IDC’s Worldwide Big Data Technology and Services 2012 – 2016 Forecast.  You can download the full report here (free, no opt-in): Worldwide Big Data Technology and Services 2012 – 2016 Forecast.

big data analytics by market size

  • Financial Services firms are projected to spend $6.4B in Big Data-related hardware, software and services in 2015, growing at a CAGR of 22% through 2020.  Software and internet-related companies are projected to spend $2.8B in 2015, growing at a CAGR of 26% through 2020.  These and other market forecasts and projections can be found in Bain & Company’s Insights Analysis, Big Data: The Organizational Challenge.  An infographic of their research results are shown below.

Big-Data-infographic-Bain & Company

potential payback of big data initiatives

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